"The G8 is smaller, and has a far greater set of shared values and experiences. But it is not a sufficient group to deal with major international economic issues," Prime Minister Stephen Harper told reporters after the summit.

Now that China and India are among the largest economies in the world, "you're past the stage where you can deal with major economic issues with only the established developed countries," he said.

Instead, the smaller group now will focus on national security and non-economic issues, while the G20 will allow China, India, Brazil and others to govern the global economy alongside the Western powers and Japan.

The G20 has existed as a finance ministers' forum since the Asian financial crisis in the late 1990s. Elevating it to a formal annual leaders' summit gives emerging markets the voice they have insisted on since their economies were hit with the recent global meltdown. [Source]